What is Long Unwinding: Is Long Unwinding Good or Bad?
Have you ever wondered why traders suddenly decide to sell stocks they once believed would fetch them long-term returns and security? That’s something called as long unwinding. Long unwinding meaning like hitting the rewind button on a long position. This reverse may be the result of shifts in market conditions, profit motives, or a change in the individual investor’s market outlook and perception. But why does a trader prefer long unwinding and long unwinding means bullish or bearish? What happens after long unwinding? Let's understand what is short covering and long unwinding.
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